Can I file Form 8829 as a remote employee working from home for a company?

Unfortunately, you're right about your second thought. Form 8829 and the home office deduction are only for self-employed individuals who file Schedule C. As a W-2 employee working remotely, you cannot use Form 8829, even if you work 100% from home. Prior to the Tax Cuts and Jobs Act (TCJA), W-2 employees could deduct unreimbursed employee expenses (including home office expenses) on Schedule A as miscellaneous itemized deductions subject to the 2% of AGI floor. However, the TCJA suspended these deductions from 2018 through 2025. So currently, W-2 employees cannot deduct home office expenses at all on their federal tax returns. The best option would be to ask your employer if they have an accountable plan that could reimburse you for your home office expenses. Those reimbursements would be tax-free to you if done properly, and your employer could deduct them as business expenses.

I was in the exact same situation last year and tried to navigate this mess. After spinning my wheels for days, I finally used https://taxr.ai to analyze my situation with the home office deduction. Uploaded my W-2 and some details about my work arrangement, and it confirmed what others here are saying - W-2 employees can't take the home office deduction anymore. But it also found some other tax breaks I qualified for that I had no idea about, like the fact that my state actually DOES allow some work-from-home expenses on my state return. The tool also explained exactly how to approach my employer about setting up an accountable plan for reimbursing some of my home office costs, which I wouldn't have known how to do properly. The analysis showed how much I could potentially get reimbursed tax-free.

Just wanted to follow up - I tried https://taxr.ai after my skeptical comment and wow, I was totally wrong! It found that my state (California) actually does allow home office deductions on the state return even though the federal return doesn't. It walked me through exactly how to document my home office expenses properly for state purposes. What was most helpful was the personalized explanation of how to approach my employer about setting up an accountable plan. I had a conversation with my manager yesterday using the talking points from the analysis, and they're taking it to HR to look into implementing a home office stipend for remote workers. Definitely worth checking out if you're in a similar situation!

If you're getting stuck trying to reach the IRS to ask about this Form 8829 situation, try https://claimyr.com - it got me through to an actual IRS agent in about 15 minutes when I had been trying for days before. I was going in circles trying to figure out if there were ANY exceptions to the home office deduction rules for remote employees. The IRS agent I spoke with confirmed everything already mentioned here - W-2 employees can't take the deduction currently at the federal level - but also walked me through how to properly document things in case my employer does agree to reimburse expenses. There's a video demo at https://youtu.be/_kiP6q8DX5c showing how it works. Honestly wasn't sure it would actually work but was desperate after being on hold forever multiple times.

I need to eat my words from my skeptical comment. After trying for almost a month to reach the IRS about some complicated remote work deduction questions (similar to this Form 8829 issue), I broke down and tried https://claimyr.com yesterday. Within 20 minutes I was talking to an actual IRS agent who confirmed everything mentioned in this thread but also helped me understand how to document everything properly for when the TCJA provisions expire. She also told me about a special form my employer needs to fill out if they want to set up a proper accountable plan for home office reimbursements. Saved me hours of frustration and probably kept me from making a mistake that could have triggered an audit. Sometimes it's worth paying for help when you're stuck.

Most large companies should offer some kind of stipend or reimbursement for home office expenses, especially if they're requiring you to work remotely. Have you checked with your HR department to see if they have a policy for this? My company gives us $50/month for internet and a one-time $500 allowance for home office setup. This is actually better than the tax deduction would be anyway, since reimbursements through a qualified accountable plan are completely tax-free to you, while deductions only give you back a percentage based on your tax bracket.

Just want to point out that some states DO still allow home office deductions for employees even though federal doesn't. Check your state tax rules. I'm in New York and was able to deduct my home office on my state return last year even though I couldn't on federal.